HomeTestsSearchRankProfile
mediumMCQCUET Accountancy 2022 8 Aug Shift 22026Accountancy
1 mark

When the ratio is low, the firm is said to have favourable indication.

  1. A
    Inventory turnover ratio
  2. B
    Operating profit ratio
  3. C
    Debtors turnover ratio
  4. D
    Operating ratio

Solution & Step-by-step Explanation

Operating ratio expresses the relationship between operating costs and net sales. A lower operating ratio indicates higher operating profit margin, which is favorable.

Practice this question

Try it yourself before checking the explanation above.

When the ratio is low, the firm is said to have favourable indication.
A
Inventory turnover ratio
B
Operating profit ratio
C
Debtors turnover ratio
D
Operating ratio

Share This Question

Financial StatementsRatios

Related Questions

easyMCQ

Which one of the following statements is true?

easyMCQ

Which of the following statements is not correct?

easyMCQ

Which one of the following statements is correct?

easyMCQ

The product formed by the reaction of an aldehyde with a primary amine is:

easyMCQ

Which part of the tobacco plant is infected by Meloidogyne incognita?

easyMCQ

The term ecosystem was coined by:

Ready for a Full Test?

Practice with timed mock tests and track your performance across Accountancy.

Browse TestsLeaderboard

Discussion